As well as a place to live a house is somewhere you can make money – and we reveal the five best places to do so.
Until 2007 the buy-to-let market was buoyant which homeowners snapping up additional properties from which to make extra cash.
Then the credit crunch and recession hit forcing landlords to sell their empty properties – often at a loss.
The market, however, has started to recover and landlords that weathered the storm have started to see the money rolling back in.
Huddersfield has several rather different areas with buy-to-let opportunities.
Some offer fast returns but there are risks, such as a higher probability of tenants defaulting on their rent – or trashing the property.
Others cost more to buy and offer slower but steadier returns.
Alex McNeil, of Bramley’s estate agents, has some advice for potential landlords.
Less than two miles west of Huddersfield town centre is an upcoming area with a vibrant main drag.
It’s also relatively cheap presenting good scope for financial returns.
A three-bedroom terrace costs between £90,000 and £100,000 and you can expect up to £500 a month in rent.
Alex says: “Marsh has good amenities and access to the motorway and the houses are more affordable.”
Huddersfield’s student population continues to rise and many choose to rent in Moldgreen after leaving their halls of residence. The area is a 10-minute walk to university, hence its popularity among students.
A three-bedroom terrace there costs about £100,000 to £120,000.
As it’s most likely to be a house share so you can charge up to £75 per room per week.
With three bedrooms that’s £900 a month – and many landlords convert a downstairs room into a bedroom boosting the monthly return to £1,200 a month.
Fartown is one of the cheapest places to buy a house in Huddersfield.
A two bedroom back-to-back terrace can cost as little as £60,000.
For that investment you can expect about £425 a month in rent.
It sounds like a fast buck but there is a greater risk of tenants defaulting on their rent or worse, leaving the property in an uninhabitable condition.
Alex says: “There is a greater risk but the return is better.
“You can nearly have two houses in Fartown for one in Marsh.”
One of the most desirable areas of Huddersfield has a surprising amount of affordable housing.
You can buy a three-bedroom terrace for as little as £130,000 and you’ll be able to rent it at upwards of £800 per month.
It may take longer to pay off the mortgage but you’ll be able to get a more reliable, longer term stream of rent.
Crosland Moor offers low-cost housing which can still command a reasonable rent.
A three-bedroom house can cost as little as £70,000 and for that you can charge upwards of £400 per month.
As with Fartown there is a greater risk of defaulting tenants and the property is less likely to appreciate in value should you want to sell it later on.
Alex says: “These areas are popular with landlords looking for higher growth but you have to accept there’s more risk.”